ANALYSIS: Glencore takes contrarian approach with two big purchases
Even for commodities deal king Ivan Glasenberg, it’s been a busy week. Glencore announced two acquisitions potentially worth as much as $2bn within days of each other: one to capture a stake in Chevron’s oil refining and fuel service stations in SA and Botswana, the other to take a bigger stake in Latin America’s top zinc miner. It’s the strongest sign yet that Glencore and its billionaire CEO are hungry for acquisitions and growth as business revs back from the commodities crisis of 2015. It also highlights the company’s divergent business strategy compared with major players Rio Tinto and BHP Billiton, which have focused on dividends and stock buybacks. Glencore has "a choice of returning cash to shareholders or buying assets that they think can deliver more than that", says Paul Gait, an analyst at Sanford C Bernstein in London. "If you are a shareholder in Glencore, you probably think Ivan Glasenberg is a shrewd operator that can add value in that process." On Friday, the Swiss ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.